South African rand touches two-year low as lira woes spread

The South African rand touched a two-year low against the dollar on Monday as concerns over the Turkish lira’s stability spread into investor sentiment on other emerging market currencies.

The rand fell as much as 10.4 per cent to 15.5517 per dollar, the lowest level since June 2016 before pulling back to be down 6.6 per cent in morning trading in Hong Kong.

The drop came after the Turkish lira fell to a fresh record low of TL7.2149 in early trade, according to Reuters data, following defiant remarks from President Erdogan made even after the lira plunged by a fifth last week amid ructions in the country’s financial market.

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